TITLE: Rethinking Accounting Software and Interfaces in the 1980s AUTHOR: Eugene Wallingford DATE: July 20, 2015 2:59 PM DESC: ----- BODY: In Magic Ink: Information Software and the Graphical Interface, Bret Victor reminds us that the dominant style of user interface today was created long before today's computers:
First, our current UI paradigm was invented in a different technological era. The initial Macintosh, for example, had no network, no mass storage, and little inter-program communication. Thus, it knew little of its environment beyond the date and time, and memory was too precious to record significant history. Interaction was all it had, so that's what its designers used. And because the computer didn't have much to inform anyone of, most of the software at the time was manipulation software -- magic versions of the typewriter, easel, and ledger-book. Twenty years and an internet explosion later, software has much more to say, but an inadequate language with which to say it.
William McCarthy, creator of the REA model of accounting
Victor's mention of the accounting ledger brings to mind the work being done since the early 1980s by Bill McCarthy, an accounting professor at Michigan State. McCarthy is motivated by a similar set of circumstances. The techniques by which we do financial accounting were created long before computers came along, and the constraints that made them necessary no longer exist. But he is looking deeper than simply the interaction style of accounting software; he is interested in upending the underlying model of accounting data. McCarthy proposed the resources, events, agents (REA) model -- essentially an application of database theory from CS -- as an alternative to traditional accounting systems. REA takes advantage of databases and other computing ideas to create a more accurate model of a business and its activity. It eliminates many of the artifacts of double-entry bookkeeping, including debits, credits, and placeholder accounts such as accounts receivable and payable, because they can generated in real time from more fine-grained source data. An REA model of a business enables a much wider range of decision support than the traditional accounting model while still allowing the firm to produce all the artifacts of traditional accounting as side effect. (I had the good fortune to work with McCarthy during my graduate studies and even helped author a conference paper on the development of expert systems from REA models. He also served on my dissertation committee.) In the early years, many academic accountants reacted with skepticism to the idea of REA. They feared losing the integrity of the traditional accounting model, which carried a concomitant risk to the trust placed by the public in audited financial statements. Most of these concerns were operational, not theoretical. However, a few people viewed REA as somehow dissing the system that had served the profession so well for so long. Victor includes a footnote in Magic Ink that anticipates a similar concern from interaction designers to his proposals:
Make no mistake, I revere GUI pioneers such as Alan Kay and Bill Atkinson, but they were inventing rules for a different game. Today, their windows and menus are like buggy whips on a car. (Although Alan Kay clearly foresaw today's technological environment, even in the mid-'70s. See "A Simple Vision of the Future" in his fascinating Early History of Smalltalk (1993).)
"They were inventing rules for a different game." This sentence echoes how I have always felt about Luca Pacioli, the inventor of double-entry bookkeeping. It was a remarkable technology that helped to enable the growth of modern commerce by creating a transparent system of accounting that could be trusted by insiders and outsiders alike. But he was inventing rules for a different game -- 500 years ago. Half a century dwarfs the forty or fifty year life of windows, icons, menus, and pointing and clicking. I sometimes wonder what might have happened if I had pursued McCarthy's line of work more deeply. It dovetails quite nicely with software patterns and would have been well-positioned for the more recent re-thinking of financial support software in the era of ubiquitous mobile computing. So many interesting paths... -----